Migrant inflow recovers

The net inflow of migrants continues to recover from its low six months ago.

Statistics New Zealand said there was a seasonally adjusted net gain of 970 permanent and long-term migrants last month, making a net inflow of 10,080 for the year ended April.

The annual total has been rising since October last year when it bottomed out at 6000.

The average net migration gain over the past 10 years is 10,500.

In round numbers over the year, there was a net loss of three New Zealanders for every four non-New Zealanders gained.

The net outflow to Australia was 21,400 up from 18,200 the year before.

There was a net inflow of 10,300 from the United Kingdom, up from 9200 the year before.

The net inflow from Asia was 7800, up slightly from 7200 the year before but well down on 16,500 in the year to April 2004.

Deutsche Bank chief economist Darren Gibbs said net inflows were running stronger than the Reserve Bank had projected.

"If sustained, it will make it less likely that the housing market will weaken as much as the Reserve Bank is hoping," he said.

ANZ National chief economist Cameron Bagrie said the pick-up was encouraging. "But there still looks to be more downside risk than up," said Bagrie.

He expects the exodus to Australia to continue, particularly with the economy picking up across the Ditch.